Oil Spikes Higher on ECB Intervention Comments

Crude Oil Traders reacted to Mario Draghi comments that he will do whatever it takes to support Eur. ECB’s Presidents comment had direct impact on Euro currency exchange rate against USD pushing it to 1.2392 on Friday 27th July, and as such significantly impacted the price of commodities.

Retracement in USD Index (DXY) from 84.13 down to 82.31 resulted in higher prices for most commodities. Also concerns in Middle East are resurfacing again which could potentially have impact on supplies.

WTi Crude for September delivery traded at 90.30 a barrel at NYME. The Price Action indicates 6.3% increase in July. Brent Crude September Contract reached 106.30 a barrel on London ICE futures exchange. The Spread between Brent Crude and WTI Crude prices was 16.34 on Friday 27th July.

Technical Analysis is indicating first resistance on the upside at 92.90 which is previous significant high on 19th July. Alternatively if the price retraces from current levels the support is located at 82.70 which is previous significant low of 25th July.

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